Embla Medical (EMBLA) Investor presentation summary

Business performance and growth

• Achieved 11% reported sales growth in Q2 2026, with 6% organic and 9% local currency growth including M&A; profitability improved with a 63% gross margin and 22% EBITDA margin; net profit grew 39%.

• Strong performance in Prosthetics & Neuro Orthotics across all regions, especially in EMEA and APAC; Americas showed growth recovery, while EMEA saw broad-based gains including Ukraine.

• Bracing & Supports performed well in Americas and APAC but faced headwinds in Europe due to competition and price sensitivity.

• Patient Care sales declined in EMEA due to market challenges, but Americas and APAC showed positive momentum from strategic initiatives.

• Free cash flow was robust, supported by strong operations, lower working capital investment, and moderate CAPEX; leverage ratio at 2.2x, within target range.

Strategic initiatives and innovation

• Six new product launches in Q2 2026 across Prosthetics, Neuro Orthotics, and Bracing & Supports; over 25% of sales now come from products launched in the last five years.

• R&D investment reached ~$50 million in 2026, about 7-8% of product sales, with a focus on premium, innovative solutions.

• ForMotion brand rollout completed across all clinics, marking a milestone in Patient Care transformation.

• Development of a dedicated MPK solution for K2 patients is on track for late 2027 launch.

• Recognized for innovation and sustainability, including inclusion in Forbes Accessibility 200 and TIME's World's Best Companies in Sustainable Growth.

Market outlook and guidance

• 2026 sales growth guidance narrowed to 5-7% organic, with EBITDA margin guidance unchanged at 20-22%.

• Growth'27 strategy targets 7-10% average annual sales growth, combining organic and M&A-driven expansion, with a gradual EBITDA margin increase.

• Emerging markets represent over 80% of new amputee volume but only 10% of current sales, highlighting significant growth potential.

• Share buyback program completed and a new $10 million program initiated.